Flow Environmental System’s (2025 Cohort) cutting-edge heat pump technology uses natural CO2 in place of traditional refrigerants to heat and cool buildings. Flow partnered with Local 455 Pipefitters’ Union to install their CO₂ heat pump at the Union’s training facility in St. Paul, MN.
Minnesota Energy Alley
Making Minnesota a global hub for energy innovation and advanced manufacturing
Minnesota Energy Alley is a public-private partnership between CEEM, Grid Catalyst, a Minnesota-based energy startup accelerator, and the State of Minnesota, driving energy innovation and economic development across the state.
Built on the proven model of Medical Alley, this initiative leverages Minnesota’s deep technological expertise, industry leadership, and collaborative spirit to help energy entrepreneurs launch, prove, and scale their businesses. By supporting emerging companies and accelerating technology commercialization, we are positioning Minnesota to lead the global clean energy transition.
Mission & Impact
Minnesota Energy Alley advances a robust statewide energy innovation ecosystem grounded in five core goals:
• Promote innovation
• Catalyze economic growth
• Support small businesses across the state
• Create family supporting careers
• Achieve state energy laws and goals
18x Impact
Every dollar of state funding unlocks $18 in follow-on investment
$1.7M
State funding (24–25)
$31M
Follow-on investment catalyzed
How pilot projects catalyze business growth
Flow Environmental System’s (2025 Cohort) cutting-edge heat pump technology uses natural CO2 in place of traditional refrigerants to heat and cool buildings. Flow partnered with Local 455 Pipefitters’ Union to install their CO₂ heat pump at the Union’s training facility in St. Paul, MN.
Pilot projects are a critical step in the commercialization process for startups. By proving out their technology in real-world applications with established and trustworthy Minnesota-based partners, our startups attract new investors and customers, with long-term potential for manufacturing and job growth.
Minnesota Energy Alley supports Grid Catalyst’s Demonstration Cohort program – a nationally-recognized accelerator that connects innovative energy startups with strategic pilot partnerships in Minnesota, providing both project and business development support.
Our startup cohorts have shown remarkable acceleration through this model:
10
Pilot projects funded
20+
New commercial projects launched through technology validation and partnerships
48
Full-time jobs created to date (with additional growth expected)
“Grid Catalyst and the Minnesota Energy Alley initiative are really helping us to punch above our weight, especially a startup company like ours where we’re making mission-critical equipment for buildings.”
Navaid Burney
CFO, Flow Environmental Systems, 2025 Demonstration Cohort Startup
Programming for entrepreneurs and startups
Minnesota Energy Alley provides essential support for innovators developing technologies in Minnesota or working with Minnesota based partners. Grid Catalyst manages this entrepreneur-focused programming, including network-building and resources for early-stage innovators and demonstration opportunities for later-stage startups. A grant from the Minnesota Department of Commerce enables the following innovation programming:
Demonstration cohorts
Demonstration cohorts match startups with strategic partnerships and pilot projects in Minnesota, with projects receiving seed funding from Minnesota Energy Alley based on their strategic value and impact within the state.
Education & support
To build up our innovation ecosystem, Grid Catalyst provides programming to introduce energy professionals to entrepreneurship, provide industry-specific support and training, and enable more innovators to start and grow their businesses.
Network building
CEEM and Grid Catalyst provide regular events and opportunities to connect with other industry partners, educators, researchers, policymakers, and others looking to make an impact in energy and innovation.
Advancing the Clean Energy Economy in Minnesota
To achieve market growth and attract investment, we must support a connected energy innovation ecosystem, from entrepreneurs and investors to established companies and workforce partners. Minnesota Energy Alley is actively cultivating partnerships and programming to elevate Minnesota’s attractiveness as a go-to region
for energy and clean technology while spurring job creation, leveraging private investment, and strengthening our state’s economy.
These include the following initiatives that support this vision:
Business voice of clean energy
We deliver the business voice of clean energy to educate decision-makers, policymakers, and the public through a strong and growing membership.
Current membersConnecting industry relationships
We bring the expertise of energy efficiency and clean energy business leaders together to foster innovation and forge new relationships.
Join todayPolicy & regulatory strategy
We use a market-driven, business-focused strategy to be the go-to source for clean energy business representation across Minnesota.
Our policy workGet involved
Together with our partners, we are positioning Minnesota to lead in clean energy innovation and cleantech for decades to come.
If you are interested in supporting this work, or exploring opportunities to collaborate, please reach out. We welcome new partners who share our vision of building a stronger, cleaner, and more competitive energy economy for Minnesota.